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January 19, 2012 C- 1981 - 018 /Deserado Mine <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />N - Air Resource Protection <br />R - Roads <br />N - Availability of Records <br />N - Reclamation Success <br />N - Backfill & Grading <br />N - Revegetation <br />N - Excess Spoil and Dev. Waste <br />N - Subsidence <br />N - Explosives <br />N - Slides and Other Damage <br />N - Fish & Wildlife <br />R - Support Facilities On -site <br />R - Hydrologic Balance <br />N - Signs and Markers <br />R - Gen. Compliance With Mine Plan <br />N - Support Facilities Not On -site <br />R - Other <br />N - Special Categories Of Mining <br />R - Processing Waste <br />N - Topsoil <br />COMMENTS <br />This was a partial inspection of the Deserado Mine conducted by Jim Stark of the Colorado Division of <br />JRS <br />Reclamation, Mining and Safety. Scott Wanstedt of Blue Mountain Energy accompanied me on the inspection. <br />The mine was actively mining and shipping coal and hauling refuse to the refuse piles. The weather was cool and <br />overcast and the ground was basically dry but had some patches of snow. <br />HYDROLOGIC BALANCE - Rule 4.05 Drainage Control 4.05.1, 4.05.2, 4.05.3; Siltation Structures 4.05.5, <br />4.05.6, Discharge Structures 4.05.7, 4.05.10; Diversions 4.05.4; Effluent Limits 4.05.2; Ground Water <br />Monitoring 4.05.13; Surface Water Monitoring 4.05.13; Drainage — Acid and Toxic Materials 4.05.8; <br />Impoundments 4.05.6, 4.05.9; Stream Buffer Zones 4.05.18: <br />- The ditches along the haul road were all clean and stable at the time of the inspection. The drop structures <br />between the haul road and mine access road were also clean. Most of the straw bales in place in this portion of the <br />ditch have been replaced. <br />- Pond RP -2/3 was dry at the time of the inspection. There was a small amount of water in each of the two <br />presettling basins but they were not discharging to the main pond. The pond embankment was well vegetated and <br />stable and no erosional problems were noted. <br />- Ponds RP -4 and RP -5 were dry at the time of the inspection. The pond embankments were well vegetated and <br />stable and no erosional problems were noted. <br />- The B -Seam dewatering pond system has been completed but water was not being discharged into the pond at <br />this time. The pond and ditch system appears to have been constructed as designed but the Division is still waiting <br />for the submittal of an as -built drawing for the area. The final polishing pond has been completed, with the outfall <br />installed and riprapped. Scott indicated that he would probably do additional riprap work on the outfall to ensure <br />its stability. The entire area was reseeded. Once water begins to flow through the pond Scott indicated that he <br />would probably seed the artificial wetland area with cattail seeds and may add willow shoots. The only item that <br />remains it to add signs to the topsoil stockpiles. <br />Number of Partial Inspection this Fiscal Year: 5 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 6 <br />